Lionsgate reported results for its first quarter fiscal 2024, and revealed that its brand Starz made a strategic decision to exit Latin America by December 31 and focus its operations on the United States, UK and Canada. At the same time, the company confirmed that its plans to sale or spinoff Starz have been delayed principally due to the recent acquisition of Entertainment One.
“With the impact of the eOne acquisition on regulatory approvals, uncertainties surrounding the strike and our efforts to create the most efficient capital structure within a disruptive marketplace, we anticipate that the separation will now take place in the first quarter of calendar 2024,” Jon Feltheimer, CEO of Lionsgate, told analysts during an after-market call.
For the quarter ended June 30, 2023, Lionsgate reported revenue of US$908.6 million, operating loss of US$16.8 million and net loss attributable to Lionsgate shareholders of US$70.7 million or US$0.31 diluted net loss per share on 230.2 million diluted weighted average common shares outstanding.
Meanwhile, revenue from Lionsgate's film and television library increased to a record US$896 million for the trailing 12 months. The company ended the quarter with US$323 million in available cash and an undrawn revolving credit facility of US$1.25 billion. During the period, Lionsgate purchased US$85 million of its bonds for US$61 million, driving a US$24 million reduction in its net debt and future cash interest savings.
"I am pleased to report a strong financial quarter with another record library performance. We continued to execute our strategic agenda culminating in our signing a definitive agreement with Hasbro last week to acquire global entertainment platform eOne. The acquisition checks off all the boxes by adding thousands of titles to our library, growing our portfolio of brands and strengthening our scripted and unscripted television business," Feltheimer said.